Defence: New rules should bring better value for money

Published: 21 January 2009 y., Wednesday

Eurai
At present it is difficult to buy military equipment in another European country due to red tape. This means that taxpayers are not getting value for money as everything from night vision goggles to police helicopters are being produced for disparate markets. We spoke to German Liberal Alexander Graf Lambsdorff who has drawn up the EP position on new rules that will make it easier to buy and sell equipment across the EU.

Last Wednesday MEPs debated new rules on defence procurement that form the second key component of the EU defence package. 
 
Value for money for taxpayers stressed
 
Currently, European defence equipment producers must obtain export licences even when selling goods to another EU member state.
 
Mr Lambsdorff believes that the market is far too convoluted: “The single market for defence products doesn't work. It’s highly fragmented and there's too little competition. European countries do not cooperate enough when buying defence or security products or services, whether it is night-vision equipment or a police helicopter.”
 
The former press attaché at the German Embassy in Washington sees the legislation as good for taxpayers. “The aim is to ensure that EU countries buy the best available product on the market, no matter whether it is produced by one of its own companies or in other EU countries,” he said.
 
The 42-year old MEP, who was elected to the European Parliament in 2004, added, “this allows for more transparent and more open competition between companies in the EU and armed European forces will benefit from better equipment”.
 
Small and medium businesses will benefit
 
Small and medium sized businesses in particular are expected to benefit from the new directive, in part because of the new rules on subcontracting. Currently a company that receives an order for a product or service can ask other companies, especially small and medium enterprises to produce part of this product.
 
“Companies that decide to subcontract have to do this in an open and transparent manner, which allows for fair competition among small and medium enterprises across the EU to cooperate with the main company,” Mr Lambsdorff said.
 
Avoiding discrimination based on “national interests”
 
Mr Lambsdorff's report focuses on the need to change existing EU rules on procurement. The new directive will ensure that there is no discrimination between procedural processes. The two main exceptions to this are contracts outside the EU and intelligence related contracts, which will still have the right of monopoly and anonymity.
 
“There will of course remain security measures whenever highly sensitive information, materials or services are at stake, in order to prevent them from getting into the wrong hands” he said.
 
A strengthened European defence policy
 
Mr Lambsdorff concluded by saying that this legislation can only strengthen a capitalist economy by opening trade and creating a single defence market: “This directive will lead to more transparency and more competition. This legislative package is making an important contribution to strengthening European security and defence policy”.
 
The proposed directive will need the formal endorsement of EU countries. After that, and after publication in the Official Journal of the EU, countries will have two years to implement the new rules.
 

Šaltinis: europarl.europa.eu
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Chastel: “to be pragmatic and determined in accession negotiations with Croatia”

State Secretary for European Affairs Olivier Chastel met with his Croatian counterpart Mr Andrej Plenkovic on 22nd July 2010. more »

World Bank Launches New Partnership Strategy with Albania

The World Bank Group’s Board of Directors today discussed a new Country Partnership Strategy (CPS) for Albania, which provides the framework for the World Bank Group’s assistance to Albania for 2011-2014. more »

EU road safety plan for next 10 years

The EU renews its target to cut annual death rate by half. more »

Happy birthday, Belgium!

180 candles light up the cake today: Belgium is celebrating its birthday. The Royal Family and its invitees will attend the national march-past that is to take place at 4 P.M. before the Royal Palace. more »

Commission allocates € 15 million to prevent hunger, malnutrition and epidemics in Ethiopia

Today, the European Commission has adopted a € 15 million aid package to address a critical food security situation in Ethiopia where an estimated 5.2 million people will be requiring food assistance this year. more »

Europe must push for a healthy Africa

The World Cup is over and life in Africa is returning to normal, but it is anything but “fair play” with life expectancy for some 30 to 40 years less than for Europeans. more »

Drought grips Bolivia

An early dry season in Bolivia is leaving an unprepared population at risk. more »

Kitchen, food waste: MEPs want new recycling rules

The EU produced more than 100 million tonnes of garden and kitchen waste last year and most of it went to landfill or was incinerated. more »

EU aid to Palestine - MEPs question Palestinian Prime Minister on results

The EU, as the biggest donor to the Palestinian Authority, has a more important role to play now than ever before, Palestinian Prime Minister Salam Fayyad told Budgets Committee MEPs on Tuesday. more »

Middle East peace process: “EU must be a full player, not just a payer”, says Pittella

“The EU should play another role than just paying out” for the Middle East peace process, Parliament's first Vice-President Gianni Pittella told Palestinian Prime Minister Salam Fayyad at a bilateral meeting on Tuesday. more »